Amanda Inc. sold 10,000 units and recorded sales of $400,000 for the first month of 2014. In making the sales, the company incurred the following costs and expenses.

Variable Fixed Cost of goods sold $184,000 $70,000 Selling expenses 40,000 30,000 Administrative expenses 16,000 50,000

(a) Prepare a CVP income statement for the month ended January 31, 2014.

(b) Compute the contribution margin per unit.

(c) Compute the contribution margin ratio.

AppendixLO1